Pattern Retest
by PRASHANT SHAH -
Price retesting of previous pivotal levels are traditionally considered as important supports and resistances and proves very effective most of the time; but trading them is quite tricky and needs confirmatory tools. Below is a quick look at the formations seen on usual charts when price retests the previous peaks or troughs. 1) Double Bottom ... Read more
Trading Column Reversal
by PRASHANT SHAH -
Although column reversal is the most basic formation of a P&F chart, using it from the trading perspective needs understanding of major P&F formations and a little practice. It can provide very affordable trading opportunity but one must know which setup should be traded. We discussed the affordability aspect while discussing the basic patterns. There ... Read more
Follow-through
by PRASHANT SHAH -
Follow-through is an important concept and I cannot stress enough about its significance. If there is strength in the move, it shall witness a follow-through. We discussed the Catapult formation which is basically a follow-through to Triple Top or Triple Bottom pattern, Double Top Buy pattern is otherwise also a bullish signal but its appearance ... Read more
Quadruple Top-Bottoms
by PRASHANT SHAH -
If a there is a Double Top Buy signal after three ‘X’s at similar level instead of two, then it is known as Quadruple Top Buy signal. It displays the successful breakout above a stiff resistance on the fourth attempt. Quadruple Buy and Sell signals are shown in below Image. These are very rare formations ... Read more
Turtle Trading on P&F
by PRASHANT SHAH -
There are a lot of books and write-ups on Turtle trading system. Legendary traders Richard Dennis and William Eckhardt conducted the turtle experiment in 1983. I recommend to search for the Turtle method online, if you are not aware of it. It is a must-read story. Turtle is a complete trading system along with money ... Read more
Weak Breakout
by PRASHANT SHAH -
Basic formations display breakout. If a bullish breakout lacks the strength to carry the move further and reverses immediately to form the column of ‘O’, it indicates the weakness in the pattern and demands further investigation. There is a possibility of false breakout and it can turn out to be the trap going forward. We ... Read more
